The US continues to struggle with a few things, the main one is probably the coronavirus at present. With 68.5 thousand new cases reported on July 30th the numbers are simply staggering compared to somewhere like Australia. The mortality rate is also increasing, pushing above 3% in some locations. The downturn in US GDP and the following weakness in the US dollar, while not making America great again will help with US exports, so may make some industries, a little greater, locally, if they have staff, or can move product.
Brazil’s interest in US and Russian wheat may dwindle somewhat if the wheat harvest being predicted comes to fruition in August. An increase in agronomic practices, thanks to cashed up farmers after their soybeans went well, has the punters tipping a record 7.34mt wheat crop. Brazil consumers around 12.5mt of wheat pa so they are not going to walk away from imports in the mid-term.
It does raise the question of what type of wheat they will be looking to import though. We all know that big crops seldom yield high quality wheat. Is this yet more fuel for those speculating higher world values for high quality wheat. It will be interesting to see what kind of wheat their 7mt of imports are made up of moving towards our harvest.
Cash bids for Canadian spring and durum wheat off the plains of SW Saskatchewan were generally flat overnight with currency having more of an impact than any fundamental news. Canola off the prairies closed a little higher on the cash and futures market.